4th Apr 2007 07:01
Tullow Oil PLC04 April 2007 Tullow Oil plc - New partner introduced to Kudu project 4 April 2007 - Tullow Oil plc (Tullow) announces that it has reached agreementto sell Itochu Corporation (Itochu) a 20% interest in its Republic of NamibiaProduction Licence No. 001, which contains the Kudu gas field. To earn the 20% interest, Itochu will pay 40% of the cost of two appraisal wellsto investigate the significant upside potential of the Kudu field. In addition,under the terms of the transaction, Itochu will make further financial paymentsdepending on the ultimate volume of reserves developed and will provide Tullowwith beneficial development financing for the project. The transaction issubject to partner pre-emption rights and Namibian Government approvals. The objective of the two-well appraisal programme is to establish commerciallyproductive flow rates from the extensive Kudu East reservoir originally testedby the Kudu-5 well. If this can be achieved, then a multi-tcf upside potentialwill be demonstrated therefore expanding the development options available forthe Kudu field. The Pride South Seas semi-submersible rig is scheduled to arrive on location atthe end of April and each well is expected to take approximately 80 days todrill. Commenting today, Aidan Heavey, Chief Executive of Tullow said: "We are delighted to welcome Itochu, a strong international partner, to workwith Tullow in the appraisal and development of the Kudu gas field. This is avery exciting time in the appraisal programme which has the potential totransform the Kudu asset by significantly increasing the reserve base and openup a number of additional development options. The successful development ofthis asset has the potential to make a very important contribution to Namibia'slong-term power needs and Tullow is committed to sanctioning this project at theearliest opportunity". For further information contact: Tullow Oil plc Citigate Dewe Rogerson Murray Consultants(+44 20 8996 1000) (+44 20 7638 9571) (+353 1 498 0300)Tom Hickey Martin Jackson Joe MurrayChris Perry Notes to Editors Tullow is a leading independent oil & gas, exploration and production group,quoted on the London and Irish Stock Exchanges (symbol: TLW) and is aconstituent of the FTSE 250 Index. The Group has interests in over 100exploration and production licences across over 20 countries and focuses onthree principal core areas: Europe, Africa and South Asia. Tullow's European interests are primarily focused on gas in the UK SouthernNorth Sea where it has significant interests in the Caister-Murdoch System andthe Thames-Hewett areas and operates over 60% of its production. In Africa, Tullow has exploration and production in Gabon, Cote d'Ivoire, Congo(Brazzaville), Mauritania and Equatorial Guinea and a large gas fielddevelopment and appraisal programme in Namibia. Tullow also has explorationprogrammes in Mauritania, Senegal, Cameroon, Uganda, Congo (DRC),Tanzania,Madagascar, Angola and Ghana. In South Asia, Tullow has exploration and production in Pakistan and Bangladeshand high impact exploration activities in India. Following the recently completed acquisition of Hardman Resources Limited,Tullow also has high impact exploration interests in French Guiana, Suriname andthe Falkland Islands. For further information please refer to our website at www.tullowoil.com ENDS This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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